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Help me avoid wash sale rule in my first TLH

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  • Help me avoid wash sale rule in my first TLH

    Hello all,

    This is my first opportunity to try and TLH and I want to make sure I avoid a wash sale rule. A brief overview of my accounts are as follows

    Taxable account:
    only VTSAX at multiple different cost basis(awaiting the breakdown from vanguard as we speak)

    ROTH IRA:
    VFIAX (vanguard 500 index fund)
    VTWAX(vanguard total world stock)
    DFWIX (DFA World ex us core equity)
    IWD (Ishares russel 1000 value ETF)
    Plus more all from a previous financial adviser that I have since fired(the only ones that have a significant amount of money in it is VFiAX and VTWAX

    403b/457b
    VINIX(vanguard institutional index fund(LArge blend)
    VIEIX (vanguard extended market index fund
    TBIIX(TIAA-cref bond index fund-institutional class)

    So far everything is on re-invest dividends but as I research TLH I'm afraid parts of my Roth IRA and 403b/457b might cause a wash sale. Is VTSAX-VFIAX-VINIX-IWD too similar to do TLH and if so is there a way to get around this problem?

    Possible solutions
    1)Should I sell everything in my roth and if so what should I sell too?
    2)Regarding my 403b/457b those are the lowest ER funds in the entire account so not much wiggle room.

    My goal asset allocation is around 90/10 so I do want to keep the same amount in equities.

    as always, Thanks in advance.

  • #2
    1- read up on IRS wash sale rule. 401k not mentioned so i fall on side of not included.
    2- learn about substantially identical. VTSAX does not equal VFIAX.
    3- either way, this is an easy swap. Sell all VTSAX with loss/replacement shares and buy VLCAX.

    this is why simplicity helps.

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